WORKSHOP ON LABOUR
LAWS
ANAND GOPALAN
Advocate
T.S.Gopalan & Co.
Advocates & Notaries
EMPLOYMENT LAW
COMMON LAW
&
STATUTORY LAW
Contract of Employment
 Invitation
 Offer
 Acceptance
 Terms of Contract
 Breach of Contract
 Damages
CONTRACT
Agreement in Restraint of Trade ( Section 27)
“every agreement by which one is restrained
from exercising a lawful profession, trade or
business of any kind, is to that extent void”
EMPLOYMENT LAW
SERVICE LAW
&
LABOUR LAW
EMPLOYMENT LAW
SERVICE LAW
•
Government Employee
• Central
• State
•
Art 309-13
LABOUR LAW ENACTMENTS
 CONCURRENT LIST
 Private Sector
 Includes PSU’s
 Confers Special Rights
 Provides Social Security
 Job Security
 Industry Specific Enactments
 Conditions of Service
 Facilities and minimum standards in work area.
INDUSTRIAL DISPUTES ACT
INDUSTRIAL DISPUTES ACT
An Act to make provision for
investigation and settlement
of Industrial Disputes
DEFINITIONS UNDER THE ID
ACT




Appropriate Government.
Industry.
Industrial Dispute.
Workmen.
OBJECTS OF LEGISLATION
 WELFARE
 SOCIAL SECURITY
 HEALTH AND
 SAFETY
Industrial Disputes Act 1947
 Act meant to investigate and settle industrial disputes.
 Special Enactment governing contract of employment.
 Conferring benefits on persons employed in lower
cadre.
 Protects workmen from hire and fire at will.
 Provides for compensation in case of lay off,
retrenchment and closure.
Industrial Disputes Act 1947
Important Definitions
 Industry {2(j)}
 Industrial Dispute {2(k)}
 Lay off {2(kkk)}
 Lock out {2(l)}
 Public Utility Service
 Retrenchment {2(oo)}
 Workmen {2(s)}
Industrial Disputes Act 1947
 Important Definitions
 Industry {2(j)
 Industrial Dispute {2(k)}
 Lay off {2(kkk)}
 Lock out {2(l)}
 Public Utility Service
 Retrenchment {2(oo)}
 Workmen {2(s)}
DISPUTE RESOLUTION
INDUSTRIAL DISPUTES ACT
SECTION 2(k)
Section 2A
 Collective
 Individual dispute
 Union alone can raise a
dispute
 Only workman can raise
dispute
 Must be referred by the
Government.
 No reference required
 Can be regarding any
dispute.
 Can be only on limited
issues.
Conciliation Machinery and Adjudication
process
Arbitration Tribunal.
Reference by Government.
Labour court and Tribunal.
INDUSTRIAL DISPUTES ACT, 1947
 Dispute
 Conciliation
 Reference
 Labour Court/Industrial Tribunal
 High Court
 Supreme Court
 Recovery of money due from an employer.
Types of Settlement
Bilateral and Trilateral Settlement
Settlement under Section 18(1) and
Section 12(3)
Chapter VA
Lay off
Retrenchment
Chapter VB
 Closure - Under the Act, closure of an industry or establishment means
permanent closing down place of employment or part thereof.
 In case of an establishment employing not less than 50 workmen, 60
days notice should be given to the Government stating clearly the
reasons for the intended closure of the establishment.
 The workmen who lose employment due to closure are entitled to
compensation of 15 days wages for each completed year of service
 When an establishment is closed due to unavoidable circumstances
beyond the control of the employer, the maximum compensation would
not exceed 3 months average wage of the employee. However financial
difficulties, accumulation of stock or expiry of period of lease or license
would not amount to unavoidable circumstances
Certain provisions under the Industrial
Disputes Act.
 Change in service conditions (Section 9A).
 Prosecution.
 Unfair labour practice.
 Approvals and permissions
ENQUIRY
 First show cause notice and reply
 Summary procedure and punishment.
 Enquiry – in terms of natural justice,
 Second show cause notice along with findings of Enquiry
Officer.
 Subsistence Allowance to be paid.
 Aid of an outsider.
 Briefing on legal aspects
 Evidence to be recorded in a fair and proper manner.
STANDING ORDERS
Industrial Employment Standing Orders
Act 1946
Applies in Tamil Nadu to establishments
employing 20 or more persons
(G.O.Ms.No.2272 , 11th November 1986).
Model Standing Orders has been provided
under the Rules.
Certification to be obtained.
Difference between Model and Certified
Standing Orders
Classification of workmen
Permanent
Probationers
Temporary
Badli
Casual
Seasonal and
Apprentices.
MISCONDUCT
Misconduct
 Willful insubordination or disobedience.
 Strike, theft, fraud, dishonesty.
 Absence without leave.
 Breach of Standing Orders.
 Engaging in trade within the premises of Industrial
establishment.
 Drunkenness, riots or disorderly behavior .
 Sleeping while on duty.
 Distribution of pamphlets
 Negligence or carelessness relating in damage to property.
 Willful slow going down.
 Conviction by Court of law.
PUNISHMENT
Punishments
 Wage cut
 Withhold of increment
 Demotion
 Suspension up to 30 days
 Dismissal
DISCIPLINARY AUTHORITY
AND HIS POWERS
Powers of the Disciplinary Authority
 The manner in which the power is
exercised
Judicial review of the same
FACTORIES ACT
Requirement to register factories
 Hazardous Process
 Working hours
 Leave with wages
 Penalties and Procedures
HEALTH, SAFETY AND
WELFARE
Health, Safety and Welfare
Health:
 Cleanliness
 Ventilation
 Drinking water
 Over crowd
 Lighting.
Health, Safety and Welfare
Safety  Safety of machinery.
 Excessive weight.
 Protection of eyes.
 Floor, Stairs, safety offices.
 Hazardous process
Health, Safety and Welfare
Welfare:

Washing facilities,

First Aid appliances.

Canteen

Rest Rooms.
TRADE UNION ACT
TRADE UNION
 Trade union is the spokesman for body of
workmen or it is the collective agent representing
their voices. Recognition of trade unions is not
codified so far in Tamil Nadu thus leaving it to the
pleasure of the management. However times are
changing and non recognition of the union which
commands membership of substantial percentage
of workmen is one of the important reasons for
industrial unrest in the country.
Trade Union movement in the country date
backs to pre independence period. Trade
union has strong presence in Industries
like the textile, banking, insurance, mines,
steel, cement, sugar, etc
 Is the trade union is a friend or a foe to the
employer? This is a debatable issue
 The trade union can be represented by
an
outsider rendering advice to the workmen
 There can be more than one trade union in an
establishment
 Verification of membership of a trade union is
also a debatable issue namely
whether
it
should be through secret ballot or through
check off system
 Multinationals putting up industry in India
has shown a distinct aversion to formation of
trade union in their establishment
CONTRACT LABOUR
(REGULATION &
ABOLITION) ACT
1970 – CLRA Act came into force
Abolition of contract labour in any
process, operation or any work in any
establishment,
• Work is incidental to manufacture;
• Work is perennial in nature;
• Work is done ordinarily through
regular workmen in the said
establishment or similar
establishment;
• Work is sufficient to employ whole
time workmen.
RESPONSIBILITIES OF PRINCIPAL EMPLOYER
TOWARDS CONTRACT LABOUR
To provide canteen if 100 or more
contract labour are engaged
To provide rest room fortnight stay
for contract labour
To provide clean drinking water
To provide sufficient latrines/urinals
RESPONSIBILITIES OF PRINCIPAL EMPLOYER
TOWARDS CONTRACT LABOUR
 To provide First Aid facility
 To ensure payment of due wages
 To ensure compliance of ESI Act, EPF Act, Payment
of Gratuity Act and any monetary liability under WC
Act if establishment is not covered under ESI Act.
 Contract workmen’s wages should not be less than
the minimum rate of wages fixed for the industry.
 If contract labour performing same work performed
by the employees of principal employer, wages,
hours of work and service condition should be the
same.
TN PAYMENT OF SUBSISTENCE
ALLOWANCE ACT, 1981
 Employee placed under suspension entitled to receive payment
from employer.

0 to 90 days – 50%
 90 to 180 days – 75%
 After 180 days – 100%
 If enquiry prolonged beyond 90 days for reasons directly attributed
to employee, then the employee is entitled to 50%.
 Not entitled if employed elsewhere.
 Non-recoverable
Shops and Establishments Act,
1947
 This is a state enactment and each state has its own Act
-Tamil Nadu Shops and Establishments Act, 1947
 Provides for regulation of conditions of work in shops,
commercial establishments, restaurants, theatres and
other establishment.
 This act does not apply to persons employed in a
position of management and to persons whose work
involves traveling, canvassers and caretakers.
SHOPS
 State Govt. to fix opening and closing hours.[S.7]
 Weekly hrs- not more than 8 hrs in a day and 48 hrs in a
week. [S.9]
 OT- 10hrs in a day and 54 hrs in a week.
 Once in four hours a break of one hour.[S.(9)(2)]
 A persons work cannot spread over more than 12 hrs in
a day.[S.10]
 Weekly holiday. [S.11]
 All persons to be allowed one whole day in a week as
holiday. [11(2)]
SHOPS & ESTABLISHMENTS
 State Govt to fix opening and closing hours.[S.13]
 Weekly hrs-OT- Spread over-Holiday.[s.14,s.15,s.16]
 No child employment– 14 yrs.
 14-17 yr old allowed to be employed only betw:6am7pm.
 Contemplates Enquiry for dismissal.
 Dismissal is Appealable.
CHILD LABOUR (PROHIBITION AND
REGULATION) ACT 1986
 Prohibits engagement of children in certain employments.
 Regulates conditions of work of children in certain others.
 Child- “a person who has not completed his fourteenth year of
age”.
 Three hours work with one hour break.
 Not more than 6 hrs (all inclusive).
 8 A.M to 7P.M - No overtime
 Can be employed in only one establishment on a given day.
EMPLOYEES PROVIDENT FUND AND
MISC. PROVISIONS ACT
 Provides for institution of Provident Funds, pension fund
and deposit-linked insurance fund.
 Applies to
Factory engaged in specified industry &
Employing twenty or more persons
 or
To establishments employing less than 20 or more persons if
notified by Central Government.
EMPLOYEES’ STATE INSURANCE ACT,
1948
 Provides for benefits to employee in case of sickness, maternity and
employment injury.
 Applicability : Area to be notified and employee’s salary less than
Rs.10,000/- p.m.
 Applies to all factories / establishments employing more than
-10 persons with the aid of power
-20 persons otherwise.
 Once covered always covered.
 Contribution of employer and employee
 Principal Employer and Immediate Employer are liable to pay.
 Benefits : six months – disablement, sickness etc.
PAYMENT OF BONUS ACT, 1965
Entitlement : 30 days and less than Rs.3,500/Disqualification : Dismissal for fraud, violent
behaviour, theft and sabotage.
Minimum : 8.33% , Maximum : 20%
Covered establishment : 20 or more – Must have
allocable surplus.
Settlement can provide for higher rate of bonus.
Employees’ Compensation Act,
1923
Injury arising out of and in the course of
employment.
Compensation for different injuries and death
provided including mode of computation.
Compensation to be deposited with the
Commissioner.
Compensation based on last drawn wage.
If covered by ESI, WC not applicable.
PAYMENT OF GRATUITY ACT, 1975
 Eligibility:
-Continuous service not less than five years.
-Superannuation, Retirement, Resignation, Death or Disablement.
 Entitled : 15 days’ wages for every completed year of service.
 Computation: Monthly wage divided by 26 multiplied by 15. Maximum of
Rs.3,50,000/-.
 Compulsory Insurance
 Nomination
 Interest for delayed payment
 Forfeit :
-Termination for willful omissions, negligence, destruction of property : to the extent of
damage.
-Termination for disorderly conduct, violence or an offence involving moral turpitude
whole or part.
Payment of Wages Act, 1936
 Applies to persons drawing less than Rs.6,500/- p.m.
 Wage period – Not exceeding one month
 Time of payment – 7 days
 Currency or coins
 Permissible Deductions
 Deductions for
-Fine
-Absence from duty
-Damage or loss
-Professional Tax
-Recovery of Loans
-Trade Union
-Others – written authorisation
TN INDUSTRIAL ESTABLISHMENTS (NATIONAL &
FESTIVAL HOLIDAYS) ACT, 1958
 National Holidays
 26th Jan, 1st May, 15th Aug & 2nd Oct
 Festival Holidays : 5 days
 Notice to work on holidays
 Employee working on a holiday is entitled to :
 Twice the wages
 Wages for such day and can avail substituted holiday.
TN LABOUR WELFARE FUND ACT, 1972
 Unclaimed accumulations
 Fines collected from employees
 Fines imposed on employers
 Contribution: Yearly
 Employee - Rs.10/- ,
 Employer – Rs.20/- and
 Government – Rs.10/-
MATERNITY BENEFIT ACT, 1961
 Applies if a woman employee has worked for 80 days in an
establishment
 Covers pregnancy, miscarriage, tubectomy , medical termination
of pregnancy.
 Leave with wages – 12 weeks.
 One additional month for illness is also allowed.
 Nursing breaks
 No stressful jobs
OTHER ENACTMENTS
1. The Apprentices Act, 1961.
2. Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959.
3. Equal Remuneration Act, 1976.
4. Industrial Employment (Standing Orders) Act, 1946.
5. Minimum Wages Act, 1948.
6. Trade Union Act, 1926.
7. Tamil Nadu Industrial Establishment (Conferment of Permanent Status to
Workmen) Act 1981
OTHER ENACTMENTS
1. Beedi and Cigar Workers’ (Conditions of Employment) Act, 1966.
2. Building and other Construction Workers’ (Regulation of Employment &
Conditions of Service) Act, 1996.
3. Cine Workers and Cinema Theatres Workers’ (Regulation of Employment)
Act, 1981.
4. Motor Transport Workers’ Act, 1961.
5. Plantation Labour Act, 1951.
6. Private Security Agencies (Regulation) Act, 2005.
7. Sales Promotion Employees (Conditions of Service) Act, 1976.
8. TN Building & Construction Act, 1984.
9. TN Catering Establishments Act, 1958.
10. TN Handloom Workers’ Act, 1981.
11. TN Manual Workers Act 1982
12. Working Journalist and New Paper Employees Act, 1955.
THANK YOU
Anand Gopalan
Partner
T.S.Gopalan & Co.,
Advocates & Notaries,
No. 2, Lakshmanan Street, T.Nagar,
Chennai – 600 017.
Mob: 99401 57326.
Email – tsg@tsgandco.com; anand@tsgandco.com